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Resolution Number 07-04-17-03RESOLUTION NO. 07-04-17-03 . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING MODIFICATIONS TO SOME CONDITIONS OF APPROVAL OF TENTATIVE TRACT 16146, A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND THE SCALZO FAMILY TRUST, AND A ONE YEAR EXTENSION OF TENTATIVE TRACT 16146. Whereas, on December 20, 2005, the City Council of the City of San Juan Capistrano conditionally approved an application by the Scalzo Family Trust for the approval of Tentative Tract 16146 to create 31 single family lots on a 16.14 acre parcel of property located at 32281 Del Obispo Street. The subject property is General Plan - designated "LD" (Low Density Residential 1.0-2.0 du/ac) and classified as "HR" (Hillside Residential) on the Official Zoning Map; and Whereas, after filing a petition for writ of mandate and complaint for inverse condemnation challenging several of the conditions of approval imposed by the City Council, the Scalzo Family Trust has requested that the City modify conditions of approval relating to the design of an adjacent drainage course and a required gate at "B" Street; and ' Whereas, the Environmental Administrator has reviewed the previously approved Mitigated Negative Declaration and has caused an Addendum to that Mitigated Negative Declaration to be prepared pursuant to the CEQA Guidelines; and, Whereas, the proposed modifications to Tentative Tract Map 16146 have not been deemed to be "substantial' so as to require review by the Planning Commission; and Whereas, the City Council conducted a duly noticed public hearing on this application on April 17, 2007 pursuant to Title 9 Land Use Code, Section 9-2.335, City Council Policy 5, and Planning Department Policy 510. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby make the following findings: 1. The proposed modifications of the conditions of approval of Tentative Tract Map 16146, with the recommended conditions of approval, are consistent with the policies and objectives of the San Juan Capistrano General Plan, including the policies and objectives relating to hillside residential guidelines, preservation of natural drainage areas, circulation, and recreational trails; and 2. The proposed modifications are not likely to cause substantial environmental ' damage or substantially or unavoidably injure fish or wildlife or their habitat in that both the original conditions of approval that are not modified and the new 533706.1 Page 1 of 3 04/17/2007 conditions of approval will ensure that impacts to the drainage course adjacent to the northeastern boundary of the project site will be mitigated below the level of significance, and residents of the new subdivision will be required to contribute to the cost of improvements to and future maintenance of the private access road between Del Obispo Street and "B" Street; and 3. The modifications to the prior conditions of approval are not likely to cause serious public health problems in that issues related to traffic safety, drainage and/or wastewater runoff will be mitigated through previously imposed mitigation measures and conditions of approval which are unchanged, and new conditions of approval; and 4. The proposed alternative design of the drainage course improvements further the City's interests in providing adequate flood control measures while providing maximum protection to both the stability of the adjacent slopes and the natural riparian habitat; and 5. The location and design of the proposed gates at each of the entrances to the subdivision ("A", "B" and "C" Streets) satisfy relevant City criteria for gates at entrances to residential subdivisions; and 6. The requested one-year extension of Tentative Tract Map 16146 is consistent with the policies and objectives of the San Juan Capistrano General Plan, and will not result in any substantial environmental damage or risk to the public health that will not be mitigated by existing unaltered mitigation measures and conditions of approval and new conditions of approval; and 7. The proposed Memorandum of Understanding between the City of San Juan Capistrano and the Scalzo Family Trust fairly resolves outstanding disputed legal actions and claims between the parties. NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Council of the City of San Juan Capistrano hereby: 1) adopts the Addendum to the previously approved Mitigated Negative Declaration for Tentative Tract Map No. 16146; 2) approves the proposed modifications to the condition of approval for the gate at "B" Street to allow emergency and resident access subject to the conditions of approval attached in Exhibit A; 3) approves the proposed modification of the conditions of approval relating to the design of the drainage course improvements to authorize a split system design, with storm water runoff from the Sun Ranch development carried underground and all other waters otherwise flowing into the drainage course carried above ground, subject to the conditions of approval attached in Exhibit A; 4) approves a one-year extension of Tentative Tract Map No. 16146; and 5) approves the Memorandum of Understanding attached as Exhibit B. 533506.1 Page 2 of 3 04/17/2007 PASSED, APPROVED AND ADOPTED this 17th day of April 2007. SAM ALLEVATO, MAYOR ATTEST: MONAHAN, CITY CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) I, MARGARET R. MONAHAN, appointed City Clerk of the City of San Juan Capistrano, do hereby certify that the foregoing Resolution No. 07-04-17-03 was duly adopted by the City ' Council of the City of San Juan Capistrano at a Regular meeting thereof, held the 17'" day of April 2007, by the following vote: AYES: COUNCIL MEMBERS: Nielsen, Uso, Hribar and Mayor Allevato NOES: COUNCIL MEMBER: None ABSTAIN: COUNCIL MEMBER: Soto R. MONAHAN, City Clerk 537706.1 Page 3 of 3 - 04/17/2007 EXHIBIT A ' CONDITIONS OF APPROVAL Modifications to Tentative Tract 16146 — Belladonna Estates INITIAL APPROVAL DATE: December 20, 2005 INITIAL EFFECTIVE DATE: December 20, 2005 ONE YEAR EXTENSION GRATED: April 17, 2007 EXPIRATION DATE: December 20, 2008 Except as otherwise expressly provided below, all of the conditions of approval adopted by Resolution No. 05-12-20-02, by which the City Council approved the Mitigated Negative Declaration and Tentative Tract Map No. 16146, shall remain in full force and effect and shall be binding on the applicant to the same extent as if set forth in full herein. As used in these conditions, and prior conditions of approval, the term "applicant" shall also mean the owner of the property subject to this approval, the developer, and any successor(s) in interest to the terms of this approval. Conditions: 1. _ Condition No. 17 of Resolution No. 05-12-20-02 is amended to provide for approval of a grading permit by the City Engineer without the necessity for review by the Design Review Committee. Condition 17(e) is hereby ' deleted. In all other respects, Condition 17 of Resolution No. 05-12-20-02 shall remain in full force and effect. 2. _ Prior to issuance of a grading permit, the applicant shall retain a licensed civil engineer from a list provided by the City to prepare the final design plans for the drainage course improvements. In conjunction with the preparation of the final design plans, the selected consultant shall prepare a hydrology study analyzing the effect of a 100 -year storm event on the drainage course assuming the split drainage system is in place. The final drainage plan shall incorporate design features to mitigate any water in the watercourse which reaches a volume or velocity capable of causing any damage in or around the drainage course. In addition, the final design plans shall ensure that the maximum amount of daily water flows remain on the surface of the drainage course. The final design plans shall maximize the sustainability of a natural, healthy riparian habitat. The final design plans shall also provide a hammerhead turn around area of a minimum 30 feet in length and 12 feet in width for the required maintenance access. 3. _ Condition No. 51 of Resolution No. 05-12-20-02 is amended to eliminate the requirement that the Drainage Improvement Plans submitted to the City Engineer prior to final map approval reflect consistency with the Hydrology Study and Hydraulic Analysis for Sun Ranch Creek prepared by MV Consulting Engineers, Inc. dated November 2005. Instead, the Page 1 of 4 EXHIBIT "A" 533706.1 Drainage Improvement Plans shall reflect consistency with the final design plans for the drainage course improvements approved by the City Engineer. Subdivisions (a) and (b) of Condition 51 are deleted. In all other respects, Condition 51 of Resolution No. 05-12-20-02 shall remain in full force and effect. 4. Any consultant and/or engineer retained by the applicant to perform any work in connection with in or in the direct vicinity of the drainage course on the northeastern boundary of the subdivision shall be required to maintain an insurance policy in a minimum amount of $5 million, which policy shall name the City as an additional insured. All such consultants and/or contractors shall be contractually obligated to defend, indemnify and hold harmless the City and its officers, agents, representatives and employees from and against any and all claims arising out of any acts or omissions of said consultant(s) and/or contractor(s) relating to the subdivision and/or the drainage course. 5. _ Condition 66 of Resolution No. 05-12-20-02 ("Dedications on the Final Map") is hereby deleted. Prior to final map approval, the applicant shall dedicate on the final map, at no cost to the City and to the satisfaction of the City Engineer, all required improvements, access rights, and easements, stating their purposes and their maintenance responsibilities. With respect to the drainage course located at the northeastern boundary of the subdivision property, the applicant shall do the following: Dedicate a drainage easement along the northeasterly tract boundary extending along the northeasterly boundaries of Lots 1 through 17 as numbered on the Tentative Tract Map. The width of said easement shall be two feet, but may be larger as necessary to accommodate the construction of the improvements in the approved final design plan for the drainage course, including a minimum ten foot wide maintenance road. 6. _ Unless otherwise directed in writing by the City Engineer, any retaining wall built by the applicant within ten feet of the northeasterly boundary of the subdivision shall be constructed in a stepped manner with no more than one-half the wall height built in any one location and a minimum three foot set back between wall sections. 7. _ Condition 86 of Resolution No. 05-12-20-06 is hereby deleted, and shall be replaced by the following: Prior to issuance of the first building permit for Lots 23, 24, 25 or 26, or prior to the sale of the first lot other than Lots 23, 24, 25 or 26 in the 31 -lot subdivision, and in addition to the obligations imposed on this property (which is specified in the existing License Agreement between the City of San Juan Capistrano and the Scalzo Family Trust, recoded as Document No. 20000356142 with the County Recorder) the applicant shall complete the widening and improvement of the existing adjacent southwesterly access road, from Del Obispo Street Page 2 of 4 EXHIBIT "A" 533706.1 to proposed "B" Street in accordance with the City approved plans. Prior to the completion of said widening and improvement, the applicant shall provide evidence satisfactory to the City Engineer that each of the 31 lots in the subdivision have been included in the Neighborhood Road Association established to pay the cost of the improvements to and future maintenance of the access road. The CC&R's for the subdivision shall require that the Homeowners Association be responsible for assessing, collecting and transmitting to the Neighborhood Road Association the funds necessary to satisfy the obligations of the subdivision residents to the Neighborhood Road Association. The inclusion of each lot in the subdivision within the Neighborhood Road Association shall be recorded against said property with the County Recorder. It is the intent of this condition that each of the properties in the subdivision be perpetually responsible for a proportionate share of the existing adjacent southwesterly access road from Del Obispo Street to "B" Street. 8. Condition 120 of Resolution No. 05-12-20-02 is hereby amended to read as follows: As an ongoing condition of approval, vehicular access to "B" Street shall be gated and shall be used for emergency and resident access only. The gate shall be constructed no closer than 36 feet beyond the curb line of the adjacent access road. The applicant may also construct a gate at "C" Street and "A" Street. If the gate at "C" Street is ' located closer than 35 feet from the curb line of the adjacent access road, the gate shall be designed so that it is always open between the hours of 7:00 a.m. and 7:00 p.m. The gate at "A" Street shall be constructed in accordance with design plans approved by the Planning Director. 9. Condition 20 of Resolution No. 05-12-20-2 is amended to delete the phrase "in compliance with the Hydrology Study and Hydraulic Analysis for Sun Ranch Creek prepared for the City by MV Consulting Engineers, Inc, dated November, 2005,". 10. The approval of the extension of Tentative Tract Map 16146 shall not become effective unless and until the settlement contemplated in the Memorandum of Understanding becomes final. Date of Approval: Resolution No. Effective Date: April 17, 2007 07-04-17-03 April 17, 2007 I(Applicant's signature on next page) Page 3 of 4 EXHIBIT "A" 5?3706.1 Applicant Acceptance of Conditions of Approval: Signature 0 Applicant Name 533706.1 Date Page 4 of 4 EXHIBIT "A" MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding ("MOU") is entered into by and between the Martin E. and Marion E. Scalzo Family Trust (the 'Trust") and the City of San Juan Capistrano (the "City"). The Trust and the City are collectively referred to as the Parties. 1) The Parties are currently engaged in litigation regarding the conditions of approval imposed on a subdivision application filed by the Trust. The Parties wish to explore a possible mechanism for resolving both the pending litigation and other related claims. 2) Toward that end, the Trust has submitted to the City a revised conceptual design plan for improvements to portions of the Trust subdivision and the City -owned drainage easement adjacent thereto. The conceptual design is based on a split drainage system, with storm water runoff from the Sun Ranch and neighboring developments carried in an underground pipe of an approximate size of 48 inches and natural and nuisance water (including rain water, spring water, anticipated future water from the upstream City reservoir, and irrigation runoff from the immediately adjacent slopes) conveyed on the surface. The conceptual design is intended by the Trust, to the greatest extent possible, to incorporate the articulated concerns of both the Trust and the City. Where the word 'Trust' appears herein, it shall also mean and include any successors or ' assigns of the Trust. 3) The Trust has also submitted to the City a conceptual plan for gating the entrances to the Trust subdivision. Under the conceptual plan, access to the subdivision from "A" Street, "B" Street and "C" Street will be controlled by gates. Only residents and emergency vehicles would be allowed access through the gate at "B" Street. Visitors and deliveries would be required to access the subdivision via "A" and "C" Streets. 4) The conceptual designs for the drainage channel improvements and proposed access gates will be presented to the City Council for consideration at a noticed public hearing on April 17, 2007. City Staff will recommend that the City Council approve the following: a) A modification of the conditions of approval requiring a gate at "B" Street to allow resident and emergency vehicle access through the gate and approval of a gate at or near the "A" Street and "C" Street entrances to the subdivision. City Staff will recommend approval of the modification requested by the Trust provided that plans for the Gates on "B" and "C" Streets are modified to show a minimum 35 foot distance between the gates and the curb face of the adjacent road. It the Trust desires to locate the gate on "C" Street less than 35 feet from the curb face of the adjacent ' road, the Gate shall be designed so that remains open between the hours of 7:00 a.m. and 7:00 p.m. Page 1 of 6 EXHIBIT B 533837.1 b) A modification of the design of the drainage channel improvements to accommodate a split drainage design. c) The Trust will retain a consultant to design the final improvements for the drainage channel from a list of qualified consultants provided by the City. The retained design consultant shall prepare a hydrology study examining the effect of a 100 year storm event on the drainage channel with the contemplated improvements. The final design, which all of the parties expect to contain modifications from the preliminary plan submitted by the Trust, shall be subject to the review and approval of the City Engineer, which approval shall not be unreasonably withheld. After obtaining at least three bids showing the estimated cost of the improvements to the drainage channel independent of the grading of the subdivision, the Trust shall retain a contractor to perform grading and construction related work in connection with the drainage channel improvements, including final landscaping. The contractor shall be licensed by the State of California, and subject to the reasonable approval of the City. Each design consultant and/or contractor retained by the Trust to perform any work relating to the drainage channel improvements shall be required to defend and indemnify the City from any and all claims arising put of said work, shall be required to provide evidence of insurance in the amount of five million dollars, and shall name the City and the Trust as additional insureds on said policy/policies of insurance. d) The City will contribute One Million Two Hundred Fifty Thousand Dollars ($1,250,000.00) toward the cost of the work required to design and construct the drainage channel improvements, including final landscaping. The Trust will bear the cost of any work exceeding the City's contribution. The City will disburse to the Trust the following portions of its contributive share as follows: twenty five percent upon issuance of a grading permit, twenty five percent upon commencement of substantial work in the drainage channel, twenty five percent upon completion of all demolition work in the drainage channel (defined as removal of all dirt and other unsuitable materials from the channel, whether permanently or temporarily), and twenty five percent upon acceptance or approval of the improvements by the City, which approval shall not be unreasonable withheld. e) That upon acceptance and/or dedication of any improvements designed for and/or constructed by or on behalf of the Trust in the drainage channel, the City shall assume all future operations and maintenance of the drainage channel. f) The City will fully cooperate with the Trust to provide any and all necessary or requested support, including but not limited to approvals and Page 2 of s EXHIBIT B 533837.1 execution of all necessary documents (including any required ' encroachment permits or permissions) to allow the Trust to seek approvals from all other governmental entities (such as Department of Fish & Game and Army Corp of Engineers) to perform said improvements in the drainage channel and on the Trust property or to modify or alter such requirements. In the event that any resource agency imposes additional terms or conditions relative to mitigation, it is understood that the Trust shall bear and be responsible for mitigation relating to the location of: 1) the maintenance road; and 2) all areas located on the Trust property (i.e., outside the boundaries of the drainage easement dedicated to the City in connection with the Sun Ranch development), including the location of the retaining wall on the Trust property. The City shall bear and be responsible for any other mitigation measures relating to the area within the previously dedicated drainage easement or appurtenant thereto. g) The City will also clarify all conditions of approval related to the Trust relinquishing or dedicating any water rights to the City. Any relinquishment of water rights related to the subdivision shall not prevent or restrict the Trust from utilizing the water well, water or rights with respect to those portions of the well and water derived there from which are unaffected by said restriction. ' 5) The Parties acknowledge that the City Council may not prejudge the issues to be considered or commit ahead of time to any particular action. The decisions of the City Council must be based on the evidence presented at the noticed public hearing. The terms and conditions set forth in this MOU are being offered subject to their approval by the City Council at its meeting on April 17, 2007, or such continued hearing date agreed to by the Trust. In the event that such approval is not obtained, the parties are released from any all liability and obligations imposed, created, or intended to be created by this MOU. In the event that the City Council does not approve the modifications to the Tentative Tract Map discussed herein at the April 17, 2007 meeting, or such continued hearing date agreed to by the trust, the parties shall have the option of returning to their former positions as if this agreement had never been made. 6) The Parties agree that no alleged breach of any of the provisions in this MOU shall give rise to a legal or equitable claim against the party alleged to be in breach in a court of law or equity. In the event of a dispute regarding this MOU, including but not limited to a dispute regarding the interpretation of the MOU, the application of the MOU, or the rights or obligations alleged to be created by this MOU, the Parties shall submit said dispute to the Honorable Michael G. Nott at Judicate West. In addition to the foregoing, in the event that an unforeseen material or economically infeasible condition or issue arises, the City and/or the Trust shall have the option of submitting the matter to Justice Nott for a binding determination as to whether said condition or issue constitutes sufficient grounds to relieve the parties of their rights and obligations under ' this MOU. If Justice Nott concludes that the parties should be returned to the positions they occupied prior to the approval of this MOU, he shall take the actions set forth in Page 3 of 6 EXHIBIT B 533837.1 Paragraph 7, below. The parties will cooperate in promptly submitting any dispute for resolution, and shall, within a period of time reasonable under the circumstances, provide written notice of any intent to submit an issue to Justice Nott. If Justice Nott retires or is otherwise unavailable, the parties will agree to submit the dispute to another retired Judge or Justice affiliated with Judicate West. In the event that the parties cannot promptly agree to a replacement arbitrator, the parties agree that Judicate West shall appoint a replacement arbitrator from its panel of jurists within ten days. 7) The Trust desires to undertake grading operations on its property this calendar year before the rainy season begins. Except as otherwise provided in Paragraph 6, above, it is the intent of the parties that if the process contemplated in this MOU does not result in an outcome that allows the Trust to grade this calendar year, the parties shall have the option of returning to the positions they occupied on the day prior to the approval of this MOU. Toward that end, the parties shall do the following: Within fifteen business days after the City Council's approval of this MOU including those provisions set forth in Paragraph 4 in the form requested by the Trust, or a modification thereof approved by the Trust at the public hearing, the parties shall do as follows: a) Each party shall provide an executed release agreement to Justice Nott. In the release agreement, the City shall agree to defend, indemnify and hold the Trust harmless from and against any claims arising out of or related to the work undertaken by or on behalf of the Trust in the drainage channel, and future operation and/or maintenance of the drainage channel —" by the City. The City shall not be required to defend, indemnify and/or hold the Trust harmless from or against any claims found, in whole or in part, to be the result of intentional misconduct or gross negligence of the Trust. Nor shall the duty to defend, indemnify and hold harmless extend to any consultants and/or contractors retained by or on behalf of the Trust. The release agreement shall contain mutual general releases between the Trust and the City, including all officers, agents, representatives, employees, and successors of each. The mutual releases shall include all claims relating to the subject property including, but not be limited to the claims asserted in or related to the lawsuit entitled Martin E. And Marion E. Scalzo Family Trust v. City of San Juan Capistrano, et. al., Orange County Superior Court Case No. 06CC04179, and the three government tort claims filed with the City in May, 2006 and March 2007 by Fredrick T. Scalzo and Donna Ostermiller as Co -Trustees of the Martin E. and Marion E. Scalzo Family Trust. The release agreement shall only become effective, and the parties each provided a copy of the fully executed release agreement, if the conditions precedent to the dismissal of the pending are satisfied. b) The Co -Trustees of the Trust shall submit to Justice Nott a fully executed Request for Dismissal of the pending lawsuit with prejudice. — Page 4 of 6 EXHIBIT B 533837.1 c) The Co -Trustees of the Trust shall provide to Justice Nott a fully executed ' and notarized Notice of Abandonment of the project approvals contemplated in this MOU in a format suitable for recordation with the County Recorder. The Notice of Abandonment shall cover only those approvals granted by the City Council at a public hearing held to consider the matters set forth in this MOU. Justice Nott shall hold all of the foregoing documents until the following terms and conditions have been met. Once the approval has been obtained from the City Council, the Trust shall undertake and timely submit the required plans to the City for approval related to TTM 16146, including but not limited to: (a) grading plan, (b) final vesting tract map, (c) the final design and construction plans for the improvements of the drainage channel including (d) the requested 100 year storm hydrology study. The City shall undertake to expeditiously process and provide final approvals to the Trust of all plans submitted to it within 15 working days from submission. The City shall respond to any resubmittals of plans or applications within 10 working days of their resubmission. Within five business days after notification that all of the plans are acceptable and have been finally approved by the City, Justice Nott shall file the Dismissal with the Court or provide it to the City Attorney for filing. Justice Nott shall also provide each party with a fully executed copy of the release agreement, and the release agreement shall become operative. At the same time, Justice Nott shall destroy of Notice of Abandonment. Except as otherwise provided in Paragraph 6, above, in the event that the final plans ' are not approved by the City, or are withdrawn by the Trust, Justice Nott shall deliver the Notice of Abandonment to the City Attorney for recordation against the Trust property, and shall destroy the Request for Dismissal and both copies of the release agreement. 8) If the City Council does not approved the matters set forth in Paragraph 4 in the form presented to the City Council or in a modified form accepted by the Trust at the public hearing, the Trust is under no obligation to provide the release contemplated in this MOU. 9) Upon approval of this MOU, City Staff shall fully cooperate in requiring the removal of any and all encroachments that have been placed in or which adversely affect or impact any public easements within the drainage channel that are part of the plans of the work to be undertaken by the Trust. Any encroachments remaining in the affected easements at the time of commencement of the grading in the drainage channel shall be removed by the contractor retained by the Trust to perform said grading. In the event that any additional expense or cost is incurred relative to the removal of any of the encroachments beyond those efforts which may be necessary to remove debris or vegetation on the surface of the channel, the Trust shall have the right to seek reimbursement either directly or through the City from those persons who caused the Trust to incur such additional expenses. 10) In the meantime, the Parties will jointly request a continuance of all pending court hearing dates and briefing schedules to accommodate the above process. Page 5 of 6 EXHIBIT B 533837.1 Dated: April _, 2007 Approved as to form: Marc Goldstein, co -counsel for Plaintiffs By: Charles Krolikowski, co -counsel for Plaintiffs The Martin E. and Marion E. Scalzo Family Trust Fredrick T. Scalzo, Co -Trustee Dated: April _, 2007 City of San Juan Capistrano Sam Allevato, Mayor ATTEST: Margaret R. Monahan, City Clerk Approved as to form: By: M. Lois Bobak, counsel for Defendants Page 6 of 6 533837.1 f�'I:lf:3m